About this trust

Key Points

Expertise: The only closed-ended vehicle that specifically focuses on the generation of income from European companies

Portfolio: Invests across continental Europe to identify those companies that produce sustainable dividends

Results: Provides sustainable and quarterly dividends to shareholders

Investment objective and policies

Aims to provide a dividend income, together with the potential for long-term capital growth from Continental European investments by outperformance of the MSCI Europe ex-UK Index. The company will predominantly invest in quoted companies with a record of paying sustainable high dividends. Currency exposure is predominantly hedged back towards the benchmark. The company has the ability to use borrowing to gear the portfolio within the range of 10% net cash to 20% geared in normal market conditions.

Risks

Points to Consider

The value of investments and the income from them can go down and up, and you may not get back as much as you paid in. Past performance is not a guide to the future.

Exchange rate changes may cause the value of underlying overseas investments to go down as well as up.

This trust may invest in non investment grade bonds, which increases the capital risk and may have an adverse effect on the performance of funds which invest in them.

Where permitted, a trust may invest in other investment trusts that utilise gearing (borrowing) which will exaggerate market movements both up and down.

For income funds/shares - Dividend income is not guaranteed and will fluctuate.

Investing in high yielding stocks may involve a higher degree of risk as high yields are not guaranteed and will fluctuate.

This fund may use derivatives for investment purposes or for efficient portfolio management.

External factors may cause an entire asset class to decline in value. Prices and values of all shares or all bonds could decline at the same time.

This trust may utlilise gearing (borrowing) which will exaggerate market movements both up and down.

This trust may also invest in smaller companies which may increase its risk profile.

Portfolio

Manager Commentary

Fund Managers

Board of Directors

Andrew Adcock

Josephine Dixon

Stephen Goldman

Jutta Rosenborg

Stephen Russell

In their words (as of 30 Nov 2017)

In November Europe ex UK finished around 2.0% lower, up 9.9% year-to-date and up 16.4% over the last 12 months. The euro recovered some of the ground it had lost against the US dollar in October, but is still below its year-to-date high. The oil price made new 2017 highs, and industrial metals prices were also strong. Meanwhile, bond markets rallied, despite the signs of strong growth, bringing long-term yields lower. This yield curve flattening meant that interest-sensitive sectors such as real estate, consumer staples and energy outperformed, while cyclicals like consumer discretionary, industrials and information technology underperformed. The Income class NAV outperformed the market and stock selection was positive. Income investing as a style outperformed as interest rates fell, and it was this style element which, more than anything, drove the fund's outperformance. At a stock level, the main contributors were large cyclical stocks that fell, but which we did not own because they do not qualify on yield grounds: Vestas, Leonardo, Altice (which more than halved after running into financing issues) and Cap Gemini all fall under this category. We also benefited from our overweight holdings in the real estate sector, and credit insurer Euler Hermes was bid for.

Investor Insights

Important information

This is a promotional page and as such the views contained herein are not to be taken as advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research on this page has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s at the date of publishing. They are considered to be reliable at the time of publishing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you.

It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance is not a reliable indicator to current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met.

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Investment is subject to documentation (Investor Disclosure Document, Key Features and Terms and Conditions), copies of which can be obtained free of charge from JPMorgan Asset Management Marketing Limited. Issued by JPMorgan Asset Management Marketing Limited which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 288553. Registered address: 25 Bank St, Canary Wharf, London E14 5JP.